Vancouver-based Jericho Oil Corporation announced its joint venture affiliate, Eagle Road Oil, LLC, has signed an agreement to acquire operated and non-operated producing wells and drillable leaseholds in central Oklahoma for a cash consideration of $3.951 million, according to a company press release. Jericho will receive a cash consideration of $1.975 million.
The agreement is with an affiliate of Enervest Ltd. The 31,200-acre acquisition is located in Noble, Pawnee, Payne and Garfield counties across two contiguous land packages in northern Oklahoma. All of the acquired production is located primarily out of the Woodford and Mississippi Lime formations.
In addition to the 21 operated producing wells, Jericho will target 41 shut-in wells with workovers, cleanouts and re-fracs as well as approximately 20 identified infill drilling locations.
The asset is in an area that complements Jericho Oil’s existing operations in Oklahoma and represents the company’s fifth acquisition within central and northeast Oklahoma since January 2015.
“We continue to take advantage of the current depressed marketplace in order to set up Jericho Oil’s platform to be ‘the’ rate of change story as oil prices recover over the next 12-24 months,” said Ryan Breen, Director of Corporate Development for Jericho.
The growth-oriented Jericho operates a regional office in Tulsa while engaged in the acquisition, development and production of overlooked and undervalued oil properties in the Mid-Continent region.